Evening Standard comment: These signs of growth are good news

The economy is still smaller than it was six years ago before the financial crash and obviously needs further rebalancing. But it’s spring and the green shoots are looking healthy

Wednesday 26 February 2014 11:47 BST

Despite the fact that the Office for National Statistics has today revised its estimate for growth last year downwards, from 1.9 per cent for the year to 1.8 per cent, the figures are still encouraging. Not only do they confirm four unbroken quarters of growth, the 0.7 per cent growth in GDP in the last quarter of 2013 is the right sort: driven in part by an increase in business investment of 8.5 per cent. That means firms are spending more on new equipment and offices, though the rate of growth in manufacturing output has fallen a little. It could be that the recovery is becoming more balanced — driven a little less by people buying things on credit and more on firms expanding and exporting.

Given that just over a year ago economists were gloomily talking of a triple-dip recession, these figures show a sea change. A combination of a fall in joblessness, lower inflation and a small but discernible increase in most people’s pay will eventually amount to a feelgood factor. Even a slight increase in interest rates before next spring — the Chancellor seems relaxed about the possibility, though the Bank is talking down speculation — is unlikely to undermine the sense of cautious optimism which sent the FTSE to record levels today.

The economy is still smaller than it was six years ago before the financial crash and obviously needs further rebalancing. But it’s spring and the green shoots are looking healthy. Not before time.

Fighting FGM

The Bar Human Rights Committee has warned the Government that victims of female genital mutilation (FGM) could sue the Government for failing to protect them. In fact, the Crown Prosecution Service is examining up to 10 cases. A successful prosecution would send out the clearest possible signal that this abuse is intolerable. Given the sensitivity of the issue, and the reluctance that children feel in testifying, prosecutors should also take seriously the Mayor’s suggestion that cases should, if necessary, be brought without victims giving evidence in court, which at present they would have to.

Meanwhile, Education Secretary Michael Gove is to write to schools about FGM, reminding head teachers of their duty to safeguard children. He met campaigner Fahma Mohamed and is to consider how to enable schools to educate pupils about FGM appropriately. He is right. As this paper has insisted, FGM has to be addressed in schools and in communities if it is to be eradicated. Teachers and school nurses have a unique pastoral relationship with individual pupils which gives them opportunities to educate pupils at risk in how to resist abuse.

Tame the traffic

The Mayor’s new programme to redesign roundabouts to make them safer for cyclists, unveiled today, has been long promised. As yet the Mayor remains vague about the exact timetable. Nevertheless, this is a welcome re-think. The plan envisages the redesign of 33 roundabouts and gyratories at a cost of £290 million, using segregated cycle lanes. That will certainly be welcome to cyclists who have to negotiate, for example, the intimidating Archway or Aldgate gyratories, two of those slated for a rebuild.

TfL’s roads strategy is at last changing: as Labour’s Valerie Shawcross points out, in Boris Johnson’s first term his focus was largely on “smoothing” traffic. Now the Mayor must ensure that these changes really happen, quickly: London’s cyclists deserve far better protection — and a larger share of road space.